Videocon shares surge 17% on spectrum deal

"Bharti Airtel has entered into a definitive agreement with Videocon Telecommunications Ltd (VTL) to acquire, at an aggregate consideration of Rs 4,428 crore, rights to use 2x5 MHz spectrum in 1800 MHz band for six circles," the company said in a BSE filing.PTI | March 17, 2016, 15:16 IST

MUMBAI: Shares of Videocon Industries today surged by up to 17 per cent after Bharti Airtel said it will acquire Videocon Telecommunications's spectrum in six circles in the 1800 MHz Band for a consideration of Rs 4,428 crore.

"Bharti Airtel has entered into a definitive agreement with Videocon Telecommunications Ltd (VTL) to acquire, at an aggregate consideration of Rs 4,428 crore, rights to use 2x5 MHz spectrum in 1800 MHz band for six circles," the company said in a BSE filing.

Meanwhile, Idea Cellular and Videocon Telecommunications have mutually agreed to call off their Rs 3,310-crore spectrum deal for two telecom circles.

In a joint statement released yesterday, the companies said they have agreed to terminate the agreement regarding spectrum sale in Gujarat and UP (West) with immediate effect.

Idea in November last year had announced to buy airwaves held by Videocon in these two circles for Rs 3,310 crore, which was billed as the first spectrum trading deal of the country.

"Idea Cellular (Buyer) and Videocon Telecommunications Limited (Seller) mutually agreed to terminate their earlier agreement regarding 'Transfer of Right to Use 1800 MHz Spectrum' in two service areas with immediate effect," a joint statement of the companies had said. SUM ADI ABK